Chongqing, China - BASF expects final government approval for its proposed 400-kilotonne-per-annum MDI (methylene diphenyl diisocyanate) plant in Chongqing, China, during 2009.
A 27 Sept. company statement said that after this OK by Chinese regulators the BASF board plans to approve the investment in the first quarter of 2010, once all necessary agreements regarding raw materials and utilities supply and integration have been finalised.
"We believe that Chongqing, as an ambitious hub for China's West, can take advantage of global megatrends and provide a growing local market for MDI," said Martin Brudermueller, BASF board member responsible for Asia Pacific, in the BASF statement. "A new world-scale MDI plant in Chongqing based on state-of-the-art environmental health and safety standards will contribute to a balanced economic and environmental development of this community," he added.
Brudemueller also outlined three core benefits of the project:
• At least 300 permanent jobs created when the BASF plant is fully operational, as well as 17 additional plants and businesses beginning operation as key partners or suppliers;
• The production of MDI, which is widely used in China to create energy efficient solutions by reducing energy in buildings, offers good growth potential for the area; and
• BASF requires that all its suppliers and partners abide by the same international safety and operational standards, which meet or exceed local standards.
"A strong commitment to environmental protection is a necessary precondition of any project like this," said Melanie Maas-Brunner, who was recently appointed group vice president, BASF Polyurethanes Asia Pacific. "BASF operates world-scale MDI plants in Belgium, US, Korea and Shanghai. The proposed Chongqing MDI plant will benefit from decades of experience," she added. (RD)